GST overhaul may reshape ecommerce strategy ahead of festival season

The simplified two-tier GST structure is expected to boost festive season sales by 15-20% as e-commerce platforms prepare for a surge in demand

The simplified two-tier goods and services tax (GST) structure, set to take effect September 22, is reshaping e-commerce strategies just weeks before the country’s crucial festival shopping season with retailers expecting 15 per cent to 20 per cent surge in sales. 

Amid this expectation of a surge in demand, retailers are grappling with short-term operational challenges, according to industry executives.

 

The new framework reduces the current multiple-slab system to just 5 per cent and 18 per cent rates, prompting some consumers to delay big-ticket purchases in anticipation of lower prices while e-commerce platforms scramble to update billing systems and inventory